Rao'nun Sos Üreticisi Sovos, Haftanın Halka Arz Hissesi Oldu ve Satın Alma Noktasına Yaklaştı

IPO Stock Of The Week and Rao’s pasta sauce maker Sovos Markaları (SOVO) is rapidly nearing a buy point amid a 27% surge in recent weeks. SOVO stock is one of the top IPO stocks to watch and is on the IBD IPO Leaders stock screen.

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Rao’s Sauce Drives Growth

Sovos’ food and beverage portfolio includes brands like Rao’s and Noosa. Rao’s Homemade, a line of pasta sauces, had a strong year, surpassing $500 million of net sales, up 35% for the full year and accelerating to 45% in the fourth quarter.

In the latest quarter, earnings and sales grew 46% and 39%, respectively, vs. the year-ago period. In 2022, the company earned 60 cents per share, down 10% year over year. Annual earnings are expected to be flat in 2023 before rising 17% in 2024, according to FactSet.

“Importantly, our top line performance was driven primarily by volume as opposed to price, which highly differentiates us from the majority of our packaged food peers,” said CEO Todd Lachman, according to a transcript of the earnings conference call.

“Our ongoing efforts to create a more focused portfolio allow us to direct more resources and investment towards our most meaningful value creation opportunities, notably accelerating Rao’s to $1 billion of net sales and beyond,” he added.

SOVO stock shows a decent 92 out of 99 IBD Composite Rating. This ranking blends key fundamental and technical metrics that historically define winning stocks.

IPO Stock’s Next Buy Point

After a 27% rally since Feb. 21, the IPO stock leader is building the right side of a cup base that has a 16.93 buy point, according to IBD MarketSmith chart analysis. Shares rose around 2% Friday afternoon, looking to extend a win streak to 10 sessions. The stock is about 4% away from the next buy point.

Since March 8, when the company reported strong Q4 results and issued strong full-year guidance, the stock’s relative strength line has surged. The RS line is at its highest level since July, a bullish signal during the general market’s volatility.

Twitter'da Scott Lehtonen'i şu adresten takip edin: @IbrDevrim büyüme hisse senetleri ve borsa hakkında daha fazla bilgi için.

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